How does one transfer personally owned property to an LLC entity

[Germond Byars]

I own a piece of residential property in San Antonio TX, and would like to transfer the property to an LLC entity. How do I go about it?

[Jerel Ehlert]

You convey title from the current owner(s) to the LLC by deed. In Texas, a quit claim deed does not recommended. Most title underwriters will require a different instrument when the LLC sales because of the issues involved with a QCD. Many attorneys argue that the QCD does not actually convey any title (at most disclaiming title in favor of the grantee), and most agree that it does not convey "after acquired title". There are no warranties of title with the QCD.

As posted previously, check your title policy, because conveying without updating the policy will have affects on coverage.  

There is probably a "due on sale" clause in the lien instrument. This rarely gets called, especially if the members of the LLC are the same people on the lien. The typical remedy is to put title back into your personal name or refi in the name of the LLC. If you do not, Lender may foreclose under the lien. This is a permissive clause, or "event of default" that allows the Lender to call the loan due under a "performance default" (as opposed to a "payment default") or not as the Lender chooses. Almost no one gets lenders' permission to "assume" the debt as the LLC.

File the deed with the county where the property is located.  Fees are set by the county and posted at the county clerk's website.  For example, Harris County charges $16 for the 1st page, $4 for each additional page.  Fees for drafting are set by the attorney.  Avoid anything you "found on the internet".